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Radio You've Been Challenged

1-11-13

The latest Borrell and Associates report is mostly positive when it comes to ad spending in 2013. The report says small- and medium-size businesses will increase their ad spenping by 8.2 percent in 2013 (from $88.9 billion to $96.2 billion). However, according to the study, the only two categories that will decline in 2013 are radio, dropping 5.9 percent, and “other print,” dropping 2.5 percent. So now it's up to you to prove those numbers wrong.

Thursday morning during his quarterly earnings call, Emmis CEO Jeff Smulyan said, "There is this perception out there that radio is no longer viable. Despite the fact that listening has held up remarkably well." He said part of the problem is there are so many people selling advertising these days. That statement was backed up by the Borrell report on small businesses.

Respondents reported receiving an average of 17 sales calls per month. Businesses with more than 1,000 employees reported 36 sales calls. Many respondents just said “far, far too many” or indicated a sense of being overwhelmed by the number of emails, calls, and visits. Still, despite the fact that SMBs are averaging nearly one call per business day, most say they speak with only one or two per week, an average of about six per month. In short, according to the Borrell study, one in three sales calls gets answered.

The report says, "We believe that radio advertisers are being targeted not only by online sellers, but also by cinema, cable, newspapers, and TV sellers. And the attractiveness of reaching niche audiences via online continues to pick off the SMBs who once embraced local auto and real estate magazines and readily bought ads and coupons in local shoppers." Another problem is advertisers have begun to migrate toward, or even demand, significant digital components to ad campaigns. Radio is coming up short on the proposals and tends to lose out as a result.

In addition to ad spending on radio dropping 5.9 percent in 2013, Borrell is forecasting online to increase 30.8 percent, cable TV to increase 10.2 percent, telemarketing to increase 11 percent, local TV to increase 7.8 percent, and cinema to increase 42 percent.

(1/12/2013 10:05:43 PM) With the odd exception of operators in relatively non-competitive markets or the occasional category-killers, radio is indeed in dire straits.

We have come to accept the machinations of unimaginative and poorly-informed management who have been attempting to clone the already toxic clones of distorted copies of programming and commercial presentation as being not only normal - but acceptable.

This no longer even qualifies as an argument with contradictory points of view. It would take an extraordinary amount of credulity and gullibility to accept anything other than that radio has been in deep kak for a very long time.

- Ronald T. Robinson

(1/12/2013 8:06:56 AM) If they're predicting a 5% decline in 2013, it's too late to do anything about it. The industry does not have the talent to quickly turn around this ship around.

- JJ

(1/11/2013 5:08:59 PM) @Tony Coloff:

Yeah, you may be selling ads but is anyone listening to them?

The only time I listen to your commercial-glutted claptrap is when I'm forced to.

I have hundreds of ad-free Internet broadcasters at my fingertips on my laptop, tablet, or smart phone.

Why should I put up with ten minutes of people shouting at me to buy junk I don't want or need just to hear the latest glorp by Britney, Kylie, or Justin.

Please.

- Steve

(1/11/2013 12:50:21 PM) Indeed, radio is not a write-off...yet. The tragedy lies in radio being frozen in time and attitudes that preclude it from getting into the late '90's - never mind more modern modes of operation.
True: The sky is not falling. But the earth is rising - and rapidly so.

- Ronald T. Robinson

(1/11/2013 12:41:38 PM) Au Contraire, LMFAO.

The internet is helping me sell more radio advertising and is helping me to better help my advertising customers sell more.

The only declines there will be is on stations that don't know how to make radio advertising work for their clients on there own stations.

And sorry to digital man. It's digital that supplements radio advertising. Not radio advertising supplementing digital.